1. Field of the Invention
The present invention relates in general to devices used by merchants for transaction processing, record keeping, and related reporting, and more particularly to such devices that provide additional features and services for use by merchants and their customers.
2. Description of the Related Art
Point of sale (or sometimes “point of service,” POS) terminals are used extensively by merchants of goods and services to facilitate the capture, authorization, and processing transactions with consumers in a quick and efficient manner. In the simplest example, a POS terminal is an electronic device placed in a merchant location, and connected to a financial institution's payment system or authorization service provider via some communication network, typically the public switched telephone network (PSTN). POS terminals are designed to authorize, record, and forward data for each sale by electronic means. Moreover, such terminals include a variety of different features, and are used by numerous different types of users including financial institutions, merchants, service providers, non-profit organizations, and government agencies. Although the typical POS terminal is designed to process credit card and debit card transactions, many POS terminal devices can process transactions associated with checks, smart cards, gift cards, ATM cards, and automatic withdrawal of funds (e.g., automated clearing house (ACH) and electronic finds transfer (EFT) transactions). Moreover, POS terminals exist in a variety of different form-factors including countertop devices, terminals integrated into other devices (e.g., a gasoline pump), stand-alone payment terminals models, and portable devices.
FIG. 1 illustrates a simplified block diagram of a prior art POS transaction system 100. POS terminal 100 is coupled to a communications network 130 so that it can communicate with transaction processor 140. In a typical example, communication network 130 is a public switched telephone network (PSTN). Because POS terminal 110 utilizes a conventional telephone line, it can be designed to provide pass through connection to the phone line for other devices such as telephone 120. In still other examples, devices that use PSTN 130 are separately connected to the network.
POS terminal 110 is generally capable of reading a credit or debit card with a magnetic card reader, displaying information about the transaction, receiving input information regarding the amount of a transaction and/or PIN numbers, constructing an authorization message, and dialing a predetermined destination over a conventional telephone line (e.g., PSTN 130) to communicate with a transaction processor 140 to thereby authorize a particular transaction. Transaction processor 140 is typically one or more specialized computer systems provided by service providers and/or financial institutions to review and authorize or reject proposed transactions. A suitable message is sent back to POS terminal 110 (e.g., an authorization message) indicating whether or not the transaction can be completed. Once a transaction is completed, POS terminal 110 may print a record of the transaction (e.g., a receipt), and either stores transaction information locally (e.g., in a terminal memory) or can also transmit another message to transaction processor 140 (or some other computer system not shown) where information relating to the transaction is stored. At the end of some business cycle, e.g., the end of a business day, POS terminal 110 again contacts transaction processor 140 to reconcile daily the day's transactions so that the records maintained by the merchant correspond with the records maintained at transaction processor 140.
Despite extensive development of POS terminal technology and inclusion of many different features in the devices, POS terminals can be limited by the communication network used to contact service providers and/or financial institutions that provide transaction authorization and processing. FIG. 2 illustrates a simplified timing diagram describing an example of a transaction initiated via a conventional POS terminal. In FIG. 2, various segments of the overall transaction are shown, with the approximate time taken for each transaction segment indicated by the individual traces. The first trace, Hook Switch, roughly illustrates the total time for transaction processing as seen from the POS terminal. Thus, the merchant time is approximately 15 seconds from beginning to end. The transaction begins with the POS terminal going off hook, and its modem detecting the PSTN dial tone. Once detected, a DTMF (dual-tone, multi-frequency) signal is generated to dial the transaction processor computer. Next, a PSTN delay occurs, approximately 5.75 seconds. This delay includes routing the call through the PSTN network, and any delays on the transaction processor side in answering the call. Once the transaction processor's modem answers the call, a modem training period occurs. In the example illustrated, the training corresponds to the Bell 212A 1200 bps transmission protocol. Numerous other transmission protocols, e.g., V.22, V.22bis, V.23, etc., can be used. Once the modem training process is complete, the POS terminal transmits one or more transfer protocol data units (TPDUs) to the transaction processor (TPDU Up). There is some delay as the transaction server performs operations needed to authorize the transaction, and here the delay is shown to be 1.75 seconds, but can vary from instance to instance. Finally, the transaction processor transmits one or more TPDUs to the POS terminal, where the TPDUs include authorization information. As shown, the transaction processor sees a transaction that is approximately 6 seconds (“Message Units”).
Although such systems may be adequate for many situations, FIG. 2 illustrates one significant source of delay, routing the call through the PSTN. Moreover, using conventional POS terminal devices in this manner requires a dedicated phone line which carries an associated cost. Because the phone line needs to be available for POS terminal transactions, it is often desirable to have a phone line dedicated specifically for the POS terminal, and thus much of the phone line's utility is wasted because it cannot be used for other services such as conventional voice traffic, facsimile traffic, or to support other POS terminals. From the point of view of the transaction service provider, PSTN communication can also be costly. Such service providers typically need to support numerous telephone lines, and use specialized equipment to handle POS terminal calls.
In view of the highly cost competitive environment in which POS terminals are currently used and cost sensitivity of many merchants, it is desirable to have POS terminals and devices used to support POS terminals that allow for more efficient use of communication resources and provide cost savings to both merchants and service providers.